But as for me, I watch in hope for the Lord, I wait for God my Savior; my God will hear me. - Micah 7:7

Conducting Market Research Market Research Process

 Defining the Problem  Obtaining Data  Analyzing Data  Recommending Solutions  Applying the Results

Defining the Problem  Most difficult step Problem definition  When a business identifies a problem and the information that is needed to solve it

Defining the Problem  Possible research questions Are customers satisfied? Are prices competitive? Are promotions effective? Are products getting to customers efficiently?

Problem, cont.  Because time and money are limited, business must determine what issues are important  More importantly, must determine which will most impact the bottom line of the company

Obtaining Data  Primary Data Obtained for specific purpose of current study  Secondary Data Previously obtained for a different purpose  Much less expensive than primary data

It will be a sign and witness to the LORD Almighty in the land of Egypt. When they cry out to the LORD because of their oppressors, he will send them a savior and defender, and he will rescue them. - Isaiah 19:20

Primary Data Collection  Through in-house or contract companies Nielson, Arbitron, Market Facts, IMS Health, Westat  Survey  Observation  Experimental

Survey Method  Most frequently used method  Must first determine size of population or sample  Types Personal interview – mall intercept Focus groups – reliable, but expensive Telemarketing – inexpensive, but invasive Mail – inexpensive, but non-responsive Internet – well rounded, but limited in scope

Observation Method  Can be more accurate then survey if performed well  Cannot measure attitudes or motivation  Contrived or natural situations Contrived – kids in a small room to test what toys they might play with Natural – mystery shoppers; cameras

Observation Method  Point-of-sale research Combines observation and interviews Pick only those who are looking at a certain product More focused, better data  Overall, observing is inexpensive, but if not performed well, useless

Experimentation  Often used in new or improved products  Keeps some control, while varying product  Infrequently used Very costly to set up Responses differ greatly from real life choices in situations

Guide me in your truth and teach me, for you are God my Savior, and my hope is in you all day long. -Psalm 25:5

Secondary Data  Internet Digital dossiers  Company profile, income state, and balance sheet  Available from Hoover, Fortune 500, Inc. 500  Government sources Collects population demographics, specific markets, exports, legal trends  Available from FedWorld & The Federal Web Locator

Secondary Data, cont.  Consumer & Business Information Companies Syndicated services & specialized research companies  Demographics, 5 yr forecasts, census information ASW – Audit & Surveys Worldwide  Provides annual update of retail and service outlets

Secondary Data, cont.  Business and Trade publications  Forbes  American Association for Public Opinion  Business Week  Council of American Survey Research  Wall Street Journal  Sales & Marketing Management

Secondary Data, cont.  Advantages Obtained easily on the internet or public libraries Saves companies money since the government collects information through Census  Disadvantages May not be suitable or available Projections may be off as result of Census lag

Analyzing Data  Data analysis Compile, analyze, & interpret results of data Need to set up data in such a way that it makes sense  A repair shop gathered data to determine levels of service Data broken down into percentages to make sense

Analyze, cont.  How would you rate the level of service? RatingMenWomen Excellent30%60% Good15%10% Average20% Fair20%5% Poor15%5%

Recommending Solutions  Research helps solve problems  Results must be presented in an organized manner 1. Title page 5. Problem definition and assumptions 9. Recommendations 2. Acknowledgements6. Review of information 10. Summary and conclusions 3. Table of contents7. Procedures used 11. Appendices (tables, figures, graphs) 8. Findings12. Works cited

Applying the Results  Results must be conclusive Must definitively answer problems stated  Implications must then be monitored for effectiveness  Research is ongoing  Every new answer brings more questions